BP profit more than doubles on 'exceptional' oil trading
BP took a hit of more than $24 billion from ditching its business in Russia but reported a huge jump in profit for the first quarter.
CNN: BP took a hit of more than $24 billion from ditching its business in Russia but reported a huge jump in profit for the first quarter.
The UK-based energy giant said Tuesday that its underlying profit soared to $6.2 billion from $2.6 billion in the same period last year, boosted by "exceptional oil and gas trading" conditions.
Oil prices have shot up by nearly 40% since the start of 2022, with benchmark Brent crude trading well above $100 a barrel. Prices for natural gas have also surged. The gains have been driven by fears of a global supply shock following Russia's invasion of Ukraine.
In response to the war, the United States, Canada, United Kingdom and Australia have banned imports of Russian oil, and the European Union could soon join them. EU countries are dramatically scaling back purchases of Russian natural gas, and Moscow has already cut off supplies to Poland and Bulgaria.
On Feb. 27, three days after President Vladimir Putin sent his forces across the border into Ukraine, BP (BP) said it would ditch its stake of nearly 20% in Russian state oil giant Rosneft, and abandon three joint ventures with the country's biggest oil producer. On Tuesday, it said those decisions led to an after-tax charge of $24.4 billion, and a loss of $20.4 billion.
"In a quarter dominated by the tragic events in Ukraine and volatility in energy markets, BP's focus has been on supplying the reliable energy our customers need," CEO Bernard Looney said in a statement. "But it has not changed our strategy, our financial frame, or our expectations for shareholder distributions," he added.
